Legal Crypto In Cuba

Legal Status

In August 2021, the Cuban government authorized the Central Bank of Cuba (BCC) to regulate cryptocurrencies through Resolution No. 215, published on September 16, 2021. Cryptocurrencies are recognized as a means of payment for commercial transactions but are not legal tender. The BCC issues licenses for entities providing cryptocurrency services, ensuring compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. The government has warned about risks, including volatility and potential illicit use.

Market Regulation

Entities offering cryptocurrency services, such as exchanges or payment platforms, must obtain BCC approval. The U.S. embargo limits access to international financial systems, driving cryptocurrency use for remittances but complicating global compliance. No specific tax laws address cryptocurrencies, and pseudonymous transactions challenge AML/CTF enforcement.

Popular Exchanges and Methods

Most transactions occur through informal peer-to-peer (P2P) networks, often via messaging apps like Telegram or WhatsApp. International exchanges like Binance or Coinbase are used with VPNs due to U.S. sanctions. Bitcoin and other cryptocurrencies are used for remittances, converted to fiat via P2P networks. Limited local exchanges exist, often operating informally.

DeFi (Decentralized Finance)

DeFi adoption is minimal due to limited internet access, technical barriers, and regulatory uncertainty. Permissionless DeFi protocols complicate AML/CTF compliance. DeFi could enhance financial inclusion but requires infrastructure and regulatory clarity.

NFTs (Non-Fungible Tokens)

No specific laws govern NFTs, and intellectual property rights in virtual spaces are undefined. Limited adoption by Cuban artists occurs due to sanctions, high minting costs, and infrastructure constraints. NFTs offer opportunities for global monetization of digital art but face significant barriers.

Recent Developments

The 2022 licensing framework expanded regulation of digital asset services. Cryptocurrencies are increasingly used for remittances and commerce, with ongoing caution regarding risks. DeFi and NFT markets remain underdeveloped due to structural limitations.

Regulatory Summary Table

Aspect	Details
Legal Status	Recognized for commercial transactions; not legal tender.
Key Regulation	Resolution No. 215 (2021), BCC oversight.
Licensing	Required for crypto service providers; ensures AML/CTF compliance.
Taxation	No specific tax laws for cryptocurrencies.
Consumer Protections	Limited; government warnings on volatility and risks.
U.S. Embargo Impact	Drives crypto use for remittances but restricts exchange access.

Useful Information

• Popular Cryptocurrencies: Bitcoin (BTC) and Ethereum (ETH) are widely used for P2P trading and remittances.
• Exchange Methods: P2P platforms via Telegram or WhatsApp, international exchanges (e.g., Binance, Coinbase) with VPNs, informal local services for crypto-to-fiat conversion.
• Remittance Role: Cryptocurrencies enable receipt of funds from abroad, bypassing banking restrictions.
• DeFi Platforms: Uniswap, Aave (minimal use due to technical barriers).
• NFT Platforms: OpenSea, Rarible (limited access due to sanctions and costs).
• Regulatory Contact: Central Bank of Cuba (BCC) for licensing inquiries.
• Risks: High volatility, lack of consumer protections, potential for illicit use.